Marketing Management: Definition, Objectives and Scope of Marketing Management with examples

Article by- Rahul Sharma

Marketing Management by Philip Kotler-

Meaning I Definition I Objectives I Importance I Process I Scope I Marketing System I Demand States I Core Marketing Concept

We learn about the Market, Marketing, and Marketing Management in this article, where all marketing campaigns and studies are carried out to benefit their customers. We also discuss the meaning, definition Importance, and Core Marketing Concept, understand marketing management, Marketing Management Process measures, the scope of marketing management, What can we Marketed, Marketing System, Meaning and types of Demand, Marketing Management Channel, Marketing Management Environment and why it is essential for every company and organization.

Table of Contents:

• Introduction to Market and Marketing
• Meaning and Definition of Marketing
• Understanding Marketing Management
• The objectives of Marketing Management
• Marketing Management Process
• Scope of Marketing Management
• What can be Marketed?
• Marketing in terms of how organization work
• Simple Marketing System
• Marketplace, Marketspace, and Meta Market
• Demand States
• Types of Demand
• Core Marketing Management Concept - Need, Wants, and Demand
• Types of Needs
• Marketing Management Channels
• Marketing Management Environment

What is Market?

A market is a place where two parties can gather to facilitate the exchange of goods and services. The parties involved are usually buyers and sellers. The market may be physical like a retail outlet, where people meet face-to-face, or virtual like an online market, where there is no direct physical contact between buyers and sellers.

Define Marketing

The term “Marketing” is derived from the word “Market”, which refers to a group of sellers and buyers that co-operate to exchange goods and services. The modern concept of marketing evolved during and after the industrial revolution in the 19^th and 20^th centuries.  

According to Philip Kotler -

“Satisfying needs and wants through an exchange process”

According to the American Marketing Association -

"Marketing is the activity, set of institutions, and processes of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large"

Understanding Marketing Management

Understanding marketing management is a very important aspect of knowing what marketing is all about.

According to Philip Kotler,

"Marketing management is the process of planning and implementation of ideas, pricing, promotion, and distribution of ideas, goods, and services to produce exchanges that meet the goals of individuals and organizations. Exchange is the basic principle of marketing. Life all depends on exchange relations organizations to obtain the necessary resources, then convert those resources into products and services and distribute them efficiently to the target market.”

 A Simple Definition of Marketing Management

Marketing Management is the art and science of choosing target markets and getting, keeping, and growing customers through creating delivering, and communicating superior customer and it can be seen below how companies target their market offerings to meet market and consumer's needs. 

Marketing management is the

art and science

of choosing target markets and

getting, keeping, and growing customers through

creating,

delivering, and

communicating

superior customer value.

Objectives of Marketing Management

1. Creating Demand & New Customers: 

Marketing Management's first objective is to create demand and new customers through various means. A conscious attempt is made to discover customers' preferences and tastes. Goods and services are produced to satisfy the needs of the customers. Demand and new customers are also created by informing the customers of the utility of various goods and services.  

2. Satisfying the Needs of Customer:

 The marketing manager must study the demand of the customers before offering them any goods and services. The sale of goods and services is not as important as satisfying the needs of the customer. Modern marketing is customer-oriented. It starts with the customer and ends

3. Enhancing the Profitability of the Business: 

The marketing department is the only department that generates revenue for the business. Sufficient profits must be earned as a result of the sale of want-satisfying products. If the business is not making money, it would not be able to compete in the market. Besides, profits are also needed for the company's growth and diversification.

4. Raising the Living Standard of People: 

Marketing management aims to improve people's quality of life by supplying them with better products and services at affordable prices. It promotes the production and delivery of a wide range of products and services for use by the consumer

5. Determining the Marketing Mix: 

To build up the company's brand image, marketing management provides consumers with high-quality goods at affordable prices and thereby generates a positive image among consumers. The role of the marketing manager is to maintain and raise the goodwill of the company through sales promotion, publicity, advertisement, high quality and reasonable prices of products, convenient distribution outlets, etc. If a firm enjoys goodwill in the market, it would increase the morale of its’ sales-force, which in turn increases profit.

Marketing Management Process

According to Philip Kotler "Exchange is the Focus"

Steps in the Marketing Management Process

• Setting the Marketing Objectives
• Analyzing Marketing Opportunities
• Researching and selecting Targets Market
• Designing Marketing Strategies
• Planning Marketing Programmes
• Organizing, Implementing, and Controlling Marketing Efforts

Scope of Marketing Management

Marketing is typically seen as the task of creating, promoting, and delivering goods and services to consumers and businesses. In fact, marketing people have been involved in marketing 10 types of entities: goods, services, experiences, events, persons, places, properties, organizations, information, and ideas.

Marketing is a global phenomenon. The scope of marketing goes beyond satisfying the customer’s needs. The marketing system should contribute to society's overall wellbeing and protection of the environment. Marketing management makes possible the activities and functions which are involved in the distribution of goods and services. The main player, Philip Kotler, who studied marketing management in depth, explained that “Marketing management is the analysis, planning, implementation and control of programs designed to bring about desired exchanges with target markets to achieve organizational objectives. It depends on designing the organizations offering in terms of the target market's needs and desires and using effective pricing, communication, and distribution to inform, motivate, and service the market.”

Marketing in terms of How Organisation Works

What can be Marketed?

1. Goods: Physical goods constitute the bulk of most countries’ production and marketing efforts. 

Example: Computers, Watches, Tools, Machinery, mobile phones, etc.

2. Services: Services play an important role in the marketing industry. Services share in the economy of the country is pivotal for its presence.

Example: services include the work of airlines, hotels, car rental firms, barbers, beauticians, etc. and professionals such as Accountants, bankers, lawyers, engineers, doctors, etc.

3. Experiences: Experience marketing is creating an experience for customers so that they can associate emotionally with the brand. This creates a bond between the customer and the brand by providing them with memorable experiences.

Marketers create experience or lifestyle and sell it to customers (also known as experiential marketing or lifestyle marketing). A product or service is offered clubbed with an experience that will win a share of heart and mind both consumers.

Example: experience marketing is Cafe, Amusement parks, Theme restaurants, Water parks, etc.

4. Events: Marketers promote time-based events, some of the popular events include trade shows, Auto Expo, IT Expo, Commonwealth games, Olympics, World Cup, IPL, EPL, religious fairs, etc.

5. Persons: When the competition gets intense and many companies are fighting for that share of money which you will probably spend on availing that product or service. These celebrities are great brands themselves and catch the attention of customers easily. Thus marketers easily market persons for promoting their brand.

Few examples of nowadays are Shah Rukh Khan for Big Basket, Irfan Khan for Syska LED, etc.

6. Places: Places are one of the most important entities in today’s era as governments across the countries are focussing on the promotion of tourism.

Example: Recent campaigns run by governments are “Khusboo Gujarat ki” by Gujarat Govt.; Andhra Pradesh Is promoting investment opportunities for their industrial growth, India is promoting itself in “Make In India” and “Digital India” campaigns

Even cities promote themself for better business eg. Amritsar – “Golden City”, Bengaluru – “The Electronic City of India”, Udaipur – “City of Lakes”

7. Properties: Properties are one of the oldest things which are marketed but now they are reached new heights. Marketers in recent times are leveraging the market demand in marketing these properties.

Example: Properties include the following things: Real estates, shops, complex, houses, or financial properties like stocks, shares, bonds, etc. Properties are bought and sold, and this requires marketing.

8. Organisations: Organizations and companies market themselves for better positioning in the mind of the customers. Companies, organizations market themselves to the consumer as a whole.

Example: TATA- market themselves for trust “Values stronger than steel”,

A very recent campaign by Kirloskar where they didn’t show any product but marketed themselves as an “Invisible but Omnipresent” focusing on “Enriching Lives”. Universities, museums, performing arts organizations, and non-profits all use marketing to boost their public images and to compete for audiences and funds.

9. Information: Information can be produced and marketed as a product. This is essentially what schools and universities produce and distribute at a price to parents, students, and communities.

Example: Google is one of the biggest companies in the world that thrive on information, magazines, encyclopedias, newspapers, etc. supply information.

10. Idea: New thing is coming up nowadays called idea marketing. They market themselves with fantastic creative ideas. They are not selling products but ideas.

Example: Government awareness campaigns like Cancer, Aids, Smoking, etc. Cosmetics selling companies sometimes say they are not selling cream or lotion but they are selling hope, confidence.

Who Markets?

MARKETERS AND PROSPECTS - 

A marketer is someone who seeks a response—attention, a purchase, a vote, a donation—from another party, called the prospect. If two parties are seeking to sell something to each other, we call them both marketers. 

Marketers are skilled at stimulating demand for their products, but that’s a limited view of what they do. Just as production and logistics professionals are responsible for supply management, marketers are responsible for demand management. They seek to influence the level, timing, and composition of demand to meet the organization’s objectives. Eight demand states are possible

What is Market?

Structure of Flows in a Modern Exchange Economy

A Simple Marketing System

Consumer Markets: Companies selling mass consumer goods and services such as juices, cosmetics, athletic shoes, and air travel spend a great deal of time establishing a strong brand image by developing a superior product and packaging, ensuring its availability, and backing it with engaging communications and reliable service.

Business Markets: Companies selling business goods and services often face well-informed professional buyers skilled at evaluating competitive offerings. Business buyers buy goods to make or resell a product to others at a profit. Business marketers must demonstrate how their products will help achieve higher revenue or lower costs. Advertising can play a role, but the sales force, the price, and the company’s reputation may play a greater one.

Global Markets: Companies in the global marketplace must decide which countries to enter; how to enter each (as an exporter, licenser, joint venture partner, contract manufacturer, or solo manufacturer); how to adapt product and service features to each country; how to price products in different countries; and how to design communications for different cultures. They face different requirements for buying and disposing of property; cultural, language, legal, and political differences; and currency fluctuations. Yet, the payoff can be huge.

Non-profit and Governmental Markets: Companies selling to non-profit organizations with limited purchasing power such as churches, universities, charitable organizations, and government agencies need to price carefully. Lower selling prices affect the features and quality the seller can build into the offering. Much government purchasing calls for bids, and buyers often focus on practical solutions and favor the lowest bid in the absence of extenuating factors.

MARKETPLACES, MARKETSPACES, AND METAMARKETS

The Marketplace is physical, such as a store you shop in like Big Bazaar, Reliance Retail, etc.;

The Marketspace is digital, as when you shop on the Internet like Amazon, Flipkart, Myntra, etc.

Metamarkets are the result of marketers packaging a system that simplifies carrying out these related product/service activities. The automobile meta market consists of automobile manufacturers, new and used car dealers, financing companies, insurance companies, mechanics, spare parts dealers, service shops, auto magazines, classified auto ads in newspapers, and auto sites on the Internet.

A car buyer will engage many parts of this meta market, creating an opportunity for metamediaries to assist him or her in moving seamlessly through them. Edmund’s (www.edmunds.com) lets a car buyer find the stated features and prices of different automobiles and easily click to other sites to search for the lowest-price dealer for financing, accessories, and used cars. Metamediaries also serve other meta markets, such as home ownership, parenting and baby care, and weddings.

Demand States:

Exchange of Information:

1. Negative Demand: A major part of the market dislikes the product and may even pay price to avoid it.

Example: Vaccination, dental work.

Marketing tasks:         i. Analyze why the market dislikes the product.

ii. Analyse whether the marketing program consists of program redesign, lower price, and more positive promotion.

 2. Non Existing demand: Target consumers may be unaware and uninterested in the product.

Example: i. Farmers maybe not interested in new farming method.

                ii. College students may not be interested in a foreign language course.

Marketing tasks: Find ways to connect the benefits of products with people's natural needs and interests.

 3. Latent demand: Consumers may share a strong need that cannot be satisfied by any existing product.

Example: Harmless cigarette, safer neighborhood, more fuel-efficient car.

Marketing tasks:              i. Measure the size of the potential market.

                                        ii. Develop goods and services to satisfy the demand.

 4. Declining demand: When the demand for the product or service becomes lower.

Example: Private colleges have seen application falls.

Marketing tasks: i. Reverse the declining demand through creative remarketing.                        

                           ii. Analyze the cause of the decline and determine whether the demand can be                                                 stimulated by the new target market.

5. Irregular demand: Demand varies on a seasonal, daily and hourly basis.

Examples: Museums are under-visited on weekdays and over crowded on weekdays.

Marketing tasks: Find ways to alter the pattern of demand through flexible pricing, promotion, and other incentives.

6. Full demand: When the organization is pleased with their volume of business.

Marketing tasks: i. Maintain the current level of demand in the face of change in consumer preference.

                           ii. Maintain and improve the quality of the product and continuously measure                                                 consumer satisfaction.

7. Overfull demand: The demand level is higher than the organization can and want to handle.

 Example: Nationalpark is terribly overcrowded in the summer.

  Marketing Tasks: I. Finding ways to reduce the demand for the products.

                                ii. Rasing price.

                               iii. Reducing promotion and service.

8. Unwholesome demand: Those kinds of demands, not acceptable by society.

 Example: Cigarettes, hard drinks, alcohol.

 Marketing tasks: i.Fear message

                               ii.Price hikes.

                              iii.Reduce availability.

Demand Examples:

 Core Marketing Management Concepts

Needs, Wants, and Demands

Needs are the basic human requirements such as for air, food, water, clothing, and shelter.  Humans also have strong needs for recreation, education, and entertainment. These needs become wants when they are directed to specific objects that might satisfy the need. A U.S. consumer needs food but may want a Philly cheesesteak and an iced tea. A person in Afghanistan needs food but may want rice, lamb, and carrots. Wants are shaped by our society.

Demands are wants for specific products backed by an ability to pay. Many people want a Mercedes; only a few can buy one. Companies must measure not only how many people want their product, but also how many are willing and able to buy it.

These distinctions shed light on the frequent criticism that “marketers create needs” or “marketers get people to buy things they don’t want.” Marketers do not create needs: Needs preexist marketers. Marketers, along with other societal factors, influence wants. They might promote the idea that a Mercedes would satisfy a person’s need for social status. They do not, however, create the need for social status.

Some customers have needs of which they are not fully conscious or that they cannot articulate.

What does it mean when the customer asks for a “powerful” lawnmower or a “peaceful” hotel? The marketer must probe further. We can distinguish five types of needs:

1. Stated needs (The customer wants an inexpensive car.)

2. Real needs (The customer wants a car whose operating cost, not initial price is low.)

3. Unstated needs (The customer expects good service from the dealer.)

4. Delight needs (The customer would like the dealer to include an onboard GPS navigation system.)

5. Secret needs (The customer wants friends to see him or her as a savvy consumer.)

Responding only to the stated need may shortchange the customer. Consumers did not know much about cellular phones when they were first introduced, and Nokia and Ericsson fought to shape consumer perceptions of them. To gain an edge, companies must help customers learn what they want.

Marketing Channels – 

To reach the target market, types of a channel used;

a. Communication Channel: Newspaper, Magazines, radio, television, mail, internet, etc.

b. Distribution Channel: Selling or delivering the physical product to the buyer/user. Includes distributor, wholesaler, retailers, or agents.

c. Service Channels: warehouse, transportation companies, banks, and insurance companies and facilitate the transaction.

Supply Chain – 

Stretches from raw materials to components to the final product and that are carried to the final buyer.

Competition – 

Includes all the actual and potential rival offerings and substitutes a buyer must consider.

Example – tea of different brands, steel, etc.

Marketing Management Environment – Includes

Task Environment: 

Includes agencies that are involved in producing, distributing, and promoting the offerings

These are the companies, suppliers, and service suppliers (advertising agencies, banking and insurance co. transportation co. and telecommunication co.)

Broad Environment: Consists of 

Demographic environment

Economic Environment

Physical Environment

Technological Environment

Question Covered in the above Article:

What are the principles of marketing?

Why is marketing management important?

What is the work of marketing management?

What do you need to know about marketing?

What are the five steps in the marketing process?

What is the marketing control process?

How do you practice marketing?

Is marketing a strategy?